Dubai Land Department (DLD) has quashed rumours that real estate registration fees are to increase.
“A number of market players are talking about alleged reports that Dubai Land Department will be increasing real estate registration fees from 4 per cent to 8 per cent,” said Sultan Butti Bin Mejren, director general of Dubai Land Department.
“This is a baseless rumour and only serves to encourage the return of speculation. It confuses buyers and needlessly compels them to speed up their purchasing decisions.”
A statement released today from the DLD added that it does not plan to raise the charges which are collected from dealers to complete their real estate transactions, in the near future.
Mr Bin Mejren said that the real estate market in Dubai “is stable and is enjoying sustainable growth, meaning that there is no requirement to revisit the fees for various activities and servicing in the near future”.
The registration fees were increased in 2013 from 2 per cent to 4 per cent through a resolution from Dubai Executive Council.
The charges are paid by the seller and the buyer equally unless otherwise agreed between the two parties.
“The decision was seen as being instrumental in preventing speculators reap quick profits and threatening the interests of investors and the market in general.” the statement said.
Mr Bin Mejren also confirmed a deadline extension for real estate developers and investors to register their properties in the Dubai Land Registry up until the end of October 2015.
Dubai property prices are currently in decline after three years of sharp appreciation.
A report from the ratings agency Standard and Poor’s last week said that prices could fall up to 20 per cent this year, but it said developers are prepared for a fall of that magnitude.
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